First Children's Finance

Report date
November 2018

What has been most instrumental to your progress?

During the first half of our grant term, First Children’s Finance sought support for Phase 2 of the Greater Than MN Project, which transitioned it from a pilot project to a formal organizational program. Our proposed work included a build-out and refinement of the program design to more effectively build the capacity of rural communities to develop innovative solutions to address their child care challenges. Additionally, First Children’s Finance completed Phase 2 with an eye toward sustainability, exploring strategies that would expand and replicate the work with sustainable funding sources.

• Rebrand. The outcomes of the Greater Than MN Project pilot increased interest in expansion of our work. Heidi Hagel Braid, then the Minnesota Director, was invited to present a plenary session to over 400 participants at the “Reinventing Our Communities: Transforming our Communities” national conference hosted by the Federal Reserve Bank of Philadelphia. As FCF transitioned the project into a formal program, it was rebranded as the Rural Child Care Innovation Program (RCCIP), making it instantly accessible to all rural communities, not only those in Minnesota.
• Community Application Process. During the initial pilot, communities were selected by our partners, the Minnesota Initiative Foundations. During Phase 2, FCF created an application process for communities and transitioned the MIFs to promotional partners, encouraging communities to apply for inclusion in the program. The application process was critical for multiple reasons: 1) it required communities to identify a Core Team from diverse community sectors to serve in a leadership role, 2) the competitive nature of the process led communities to take their engagement in the process seriously, and 3) it required applicants to narrow in on specific issues regarding child care shortages, and commit to action to solve local issues.

• Enhanced Community Engagement. The program refinement during Phase 2 centered on an enhanced community engagement process that enabled rural communities to track and sustain their initiatives over time. Most significant was the amount of research and data gathering that is front-loaded in the community process. During Phase 1, FCF experienced several communities becoming “stuck,” wanting to further study the child care shortage issue rather than move
toward the implementation of action that could alleviate the demand. FCF redesigned the community process to include a thorough orientation of a local Core Team, which included a Supply-Demand Gap Analysis. FCF works to increase the capacity of the Core Team to understand the shortage and identify the factors, patterns and beliefs that are contributing to the shortage. Core Team members seek local feedback with support from FCF. The RCCIP has developed a cadre of program materials, including, but not limited to, community education events, stakeholder interview questions, parent preference surveys, child care provider focus groups, and presentations and communications to engage the private sector and local government.
• Core Team. In Phase 1, FCF used the terminology “Business Advisory Councils” to describe groups of private sector businesses, employers and elected officials that engaged in the community process. Words matter, and FCF soon realized that the Business Advisory Councils dispensed advice, but were adverse to get involved in implementation of community solutions. The Phase 2 design introduced the Core Team to replace BACs.

Reflections on inclusive, collaborative or resourceful problem-solving

The RCCIP is based completely on collaboration with rural communities.
The program refinement centered on an enhanced community engagement process that enabled rural communities to track and sustain their initiatives over time. Most significant was the amount of research and data gathering that is front-loaded in the community process. During Phase 1, FCF experienced several communities becoming “stuck,” wanting to further study the child care shortage issue rather than move toward the implementation of action that could alleviate the demand. FCF redesigned the community process to include a thorough orientation of a local Core Team, which included a Supply-Demand Gap Analysis. FCF works to increase the capacity of the Core Team to understand the shortage and identify the factors, patterns and beliefs that are contributing to the shortage. Core Team members seek local feedback with support from FCF. The RCCIP has developed a cadre of program materials, including, but not limited to, community education events, stakeholder interview questions, parent preference surveys, child care provider focus groups, and communications to engage the private sector and local government.

Other key elements of Community Innovation

Because our work is focused on a very particular niche, child care supply in rural communities, FCF's expertise in financial and operational management has contributed to our progress. We have an extensive understanding of the business model of child care, as well as a thorough understanding of licensing and Quality Rating Systems. Our national connections enable us to think outside of the box, adapting new ideas that are sustainable, impactful, and are the right-size for rural communities. Additionally, we have reframed child care as an economic development strategy: this allows us to engage the private sector, economic development and local government in new and different ways. Instead of using moral arguments, which is historically what the early childhood field has done, FCF has advanced the conversation to focus on the vitality of rural communities, investment in the future workforce and attracting and retaining families in rural communities. The combination of these factors, including inclusivity, collaboration and resourcefulness have begun to move the needle on rural child care supply.

Understanding the problem

Our collaborations with a number of new communities continue to evolve our ideas about what is possible in rural communities. We continue to see creative, sustainable ideas develop child care supply. As each community is different, so to are the innovations that create new child care slots. We continue to analyze the business models, sharing the elements that make them successful with other rural stakeholders and interested communities.
FCF is asked to speak across North Dakota and Minnesota about the RCCIP and its results. What has developed from these requests is a training for communities (many of whom we do not have the capacity to serve in this round of the RCCIP) that can begin this work on their own. Our 'Right Sized Solutions' training is designed to help community leaders understand the child care business model and why it struggles within a market context. The training also emphasizes the creation of solutions that are financially sustainable and aligned to the demand for care in a particular area. Providing information about how we operate the RCCIP, and the lessons we've learned often jumpstart independent community initiatives.

If you could do it all over again...

The first year of this two-year grant was used to redesign our community engagement process. We used the time wisely to develop new aspects of the process that we know will increase our impact. We would not use the time differently.

In reference to the expansion of our work in North Dakota, which was referenced in an earlier answer, it would have been helpful for us to move forward with willing partners rather than hold up progress in order satisfy one entity.

One last thought

During the first half of the grant period, FCF provided ongoing support and technical assistance to 4 communities: Itasca County, Redwood County, Clay County, and Stevens County. In addition to community engagement process, FCF also provides Business Leadership Cohorts for family child care providers and child care centers in those communities. Embedded in the cohorts are access to FCF's proprietary financial analysis tools that assist program in identifying opportunities for profitability and sustainability.
In July, FCF accepted 4 new communities: Sibley County, Austin, Dawson-Boyd, and Roseau. Recruitment efforts for North Dakota communities are underway as well. FCF has developed strong relationships with the North Dakota QRIS system, and has had our training and trainers approved into their online system; any child care provider who participates in our cohorts will receive credit on their career lattice and meet business-related performance indicators in the rating system.